France’s CNP raises offer for 40% of Brazil’s Caixa Seguridade to BRL 7bn
French insurer CNP Assurances raised its offer for 40% of Caixa Seguridade, the insurance arm of Brazilian state bank Caixa Economica Federal, to BRL 7bn from BRL 4.6bn previously.
The negotiations that led to the higher price took six months. The amount may rise by an additional BRL 800mn if the insurance unit attains its performance targets.
CNP had initially negotiated an extension of its exclusive distribution contract to 2041, but a five-year extension was added until 2046 as a result of the raised offer. The distribution rights include life, pension and credit life insurance using Caixa's branch network.
Brazil’s new government, which came into force in the beginning of 2019, reopened negotiations on the agreement as part of the preparation for Caixa Seguridade’s IPO.
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